Business Hacks

ERP Software

ERP is a business management software (accounting and operation oriented) that enables organizations to use one system to manage business processes. ERP software has become the leading solution of choice for growing businesses that want to maintain and improve their competitive edge.

1. The Functional Fit for Your Organization

This might seem straight forward, but evaluating how the functionality of ERP software products and services fit with your business is the most important (and time consuming) aspect in the ERP selection process. Finding the best functional fit includes evaluating ERP software, watching ERP demos, and meeting with solution consultants. It also includes internal work. One of the most helpful things you can do during a selection project is facilitate internal discussions to determine your business requirements for ERP and outline the functional areas to address. Key questions that can help shape these discussions are:

– What is outdated about your current system? Why are you considering a new ERP?

– What works well with your current business systems?

– What manual processes could you potentially automate?

– In what areas of the business are you lacking visibility – or have a hard time with reliable business reporting?

– What other systems need to be integrated with the ERP?

The end result should be a detailed list of requirements for new ERP software solution.

2. Industry Experience

Another good question to ask during an ERP selection is: what ERP software is used in your industry? While not necessarily industry-specific, some ERP solutions are optimized to perform best in industries such as manufacturing and distribution. This is an important question that can help narrow the list of the ERP software you evaluate.

3. ERP Implementation Project Considerations

– Timing for the business. Is it the right time to take on this project? If not, when? This is often a difficult question. In most cases, there’s never the perfect time – however there might be better times than others. For example, after a merger or acquisition might be the right time, or when deciding between a major (expensive) upgrade of your current system versus new software. Otherwise, the right time depends heavily on your team.

– People and executive support. An ERP implementation needs both executive support and involvement, as well as upper management and other key internal leaders on the project.

– Methodology and a project plan. To be successful, an ERP implementation methodology is fundamental. Thorough project planning and project communication tools are also keys to success.

4. The Technology

In addition to software functionality, there are other technology considerations that are important to the ERP selection process. Best-in-class ERP software includes, at a minimum, these technology features:

– End user reporting tools – easier access to information, no development skills necessary

– Simplicity in UI and UX

– Business intelligence

– Data security

– Reliable system performance and response time – very limited downtime

– Ability to integrate with other systems

– Ability to make necessary customization

5. Risk

Taking the time to create a thorough map of the key business processes that are essential for the operations of your organization, and using that throughout the ERP selection and implementation, will also negate risk. Essential elements to map out include integrations with other systems as well as necessary ERP customization for your organization.

Change management and end-user training are also key areas to plan for in order to avoid risk.

6. Scalability

consider how the technology fits with your business strategy both today and down the road. How will the software help facilitate and support future plans for your organization? Whether future plans include growth, new markets, merging with another entity, the new technology you select should mesh with the strategic direction of your organization.